Penalty assessed against a consignor, consignee, or other such party responsible for delay in loading or unloading of a shipping vessel or for undue detention (usually over 48 hours) of the transportation equipment. Also called detention charge.
Tips on How to Avoid Demurrage Charges
· Know in advance how many free days your freight forwarder has been granted.
· Make sure to pre-clear your cargo as soon as possible. RDS can clear your cargo at the earliest possible time so long as all documents are received in a timely manner.
· If you have volume shipments, request extended free time from your freight forwarder and/or carrier. Volumes need to be close to a 1,000 containers/year to warrant extended free time.
· Make sure your trucker can pick up the cargo within the allotted free time and that a trucker has been assigned to your shipment. Have a backup or alternate trucker in case your initial trucker cannot pickup your cargo in time.